I actually meant non-fully-discretionary edge! However, non-fully-mechanical also. I think my approach suits options traders better. What would you call/name it in trading approach?
You have to be disciplined, yet flexible at the same time. You use discipline to stay with your back-tested strategy, yet stay flexible in the event that your strategy under performs or just flat loses money. This is not easy.
It is not willpower but confidence that is needed. Willpower implies you are consciously working against your own natural instincts to do something that you think is best for you. However, when you are confident in your system, and you are exercising proper money management skills, you do not need willpower to follow your system; you do not have to argue with yourself or prop yourself up. Trading becomes rote and boring. All the psychology in the world will not make up for inadequate backtesting and poor understanding of the effect of each parameter of your system. Or maybe you don't actually have a system. That's another issue that psychology will not fix. Confidence comes from backtesting under all previous conditions, and other, theoretical conditions as well. I've backtested many systems that I never ended up using. It's not unusual to discover that someone else's so-called back tests cannot be duplicated when you do them yourself. It's amazing how many things people claim are effective strategies that simply do not work. Just because something sounds like it should work does not mean that it does.
You need confidence AND willpower. As you wrote, willpower implies you are consciously working against your own natural instincts to do something that you think is best for you. The problem is in your own natural instincts. Especially in the beginning of your "career" as trader. Subconscious is very powerful and works without you noticing it. It is an automatical reaction. So in situations were you are distracted, or have to take a very fast decision, your subconscious will overrule your conscious. You need time and have to train your brain to stop your automatical and subconscious reaction and replace it with the conscious reaction that should be executed. For the rest I agree completely with your posting. A good example of this power of subconscious is that people can learn how to react if they lose control over their car while driving. Following their natural instinct is always a bad solution, so they have to learn what to do and what not to do. And apply it immediately when necessary. Especially that last thing is difficult and can only be changed by training a lot.
http://www.elitetrader.com/et/index...ty-planning-to-trade-full-time.295982/page-11 A willpower example:
Sometimes, it would be hard in trading to distinguish confidence and overconfidence in yourself or/and your system. That could be fatal, again and again. Some people's self-confidence could be completely lost in trading. That's why willpower is required. Don't give up. Take a rest, then find out why in order to improve your system. Stand up again! Many times in the past, I read some people on ET said requiring the willpower like a Delta/ Seal's! https://en.wikipedia.org/wiki/Delta_Force http://www.elitetrader.com/et/index.php?search/3173452/&q=willpower&o=date&c[node]=35
Willpower Discussion in 'Psychology' started by Ricter, Apr 20, 2006. http://www.elitetrader.com/et/index.php?threads/willpower.67625/